It is amusing listening to some callers on the radio talk shows, even those who consider themselves educated, dismissing the warnings of the Moody’s credit rating agency about the Progressive Liberal Party’s mortgage plan. You hear things such as “who cares” and “they should stay out of our business”.
The fact of the matter is that we should listen to what the international credit rating agency says, because we are absolutely dependent on foreign loans in order to survive. The Bahamas imports almost everything it needs, even food. In addition, our country runs on fiscal deficits year after year. So, if international credit rating agencies downgrade us, that could force us to have to borrow money at higher interest rates. If things get worse, we might not be able to borrow at all.
The PLP’s mortgage plan was not feasible from the beginning. I think its leadership knew that from the beginning. But in order to get votes they would say anything the people wanted to hear. But it is not the first time they will not keep their promises to the Bahamian people. As for the PLP voters, not to worry, there will be many more disappointments during the next five years.
By: Harry Johnson
